DKL is interesting for me especially inasmuch as I'm not confident yet that I have a realistic handle on how it trades.
On the plus side, though...
1. It pays a great yield.
2. It's been a very steady payer from the start.
3. Stands to benefit from the DK & ALDW merger in the works now.
4. DK, DKL's parent (!) has pledged to "drop down" assets from the merger into DKL. This has to translate into a positive for unitholders as it increases the footprint, logistically speaking. We need to keep in mind that there's always been enough energy around for all of us on the planet. The problem has been that not all communities were in position to avail themselves of supplies when the demand side was outstripping local sources.
Logistics embraces that issue as it provides terminals for ready transportational facilities and docking stations plus straight-ahead storage facilities plus supplies commercial markets with carbon-based product including retail plus pipeline space plus a whole host of other pieces of profit orientation.
Now, then---add in likely strengthening of ALL OF THE ABOVE and you'll immediately see the treasure-trove opportunity we have when ALDW is finally digested by DK and subsequently DKL. I'm convinced that fat yield-based distributions are very low hanging fruit for us with a strong possibility that we'll doubly benefit from the pending big swallow coupled with the removal of one formerly key player in the logistics arena---ALDW.
There promise to be exciting times for us energy hounds.
Happy Turkey Day!
